If the Social Cost of Producing a Good or Service

question 9

Multiple Choice

If the social cost of producing a good or service exceeds the private cost,

• A)a positive externality exists.
• B)the sum of consumer surplus and producer surplus is maximised.
• C)the market achieves economic efficiency.
• D)a negative externality exists.

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Definitions:

Dendrites

The branched projections of a neuron that are responsible for conducting the electrical signals toward the cell body.

Synaptic Connections

The points of contact where two neurons communicate with each other, transmitting signals through the release of neurotransmitters.

Brain's Growth

The process of physiological and structural development of the brain, often most rapidly occurring in childhood and adolescence.

Neuronal Pruning

The process by which extra neurons and synaptic connections are eliminated in order to increase the efficiency of neuronal transmissions.